Loan Types


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VA RURAL HOME LOAN

The Veterans Administration guarantees/insures farm loans that allow for Veterans to purchase a primary home or refinance their current home in a rural, suburban or urban environment. There is no limit on acreage as long as the property is typical of the area. The highest and best use should be for residential purposes. Tillable ground, limited farm animals and small farming is allowed. Non-commercial outbuildings are allowed. Working commercial farms are not allowed. Farm Loan Center provides the lending options available for Veteran loan farm financing to support the growing need for financing in Rural America

  • No down payment – 100% financing
  • Competitive low interest rates
  • Seller is allowed to pay all closing costs
  • VA funding fee applies (Note: **Funding fee is waived with VA service connected disability)
  • No VA loan limit *VA funding fee applies (Note:  Funding fee is waived with VA service connected disability – see below)
  • Credit scores of 580+
  • Higher limit on debt ratios

**Disabled Veterans with a VA related disability of 10% or more are waived of the funding fee charged to non-disabled Veterans. Surviving spouses of Veterans who died in-service or from a service-connected disability also qualify for the exemption. Purple Heart recipients.


HOBBY FARM/PART TIME FARM LOAN

Hobby Farm Loans are designed for people who wish to finance a home on a property where they can produce some income from agricultural activity such as crops, livestock, hay, alfalfa, etc. Minimum $500 agricultural income can contribute to your total income for the purpose of qualifying for the loan; it cannot be your primary source of income.

  • Minimum loan amount is $100,000, maximum loan amount is $3,000,000
  • Loans to 80% of the purchase price with no mortgage insurance  
  • Refinance or cash out to 80% of appraised value 
  • Cash out to 75% of appraised value, 65% on manufactured homes 
  • Maximum 36% debt-to-income ratio – dwelling must be 25% of overall value
  • Primary residence or second home 
  • Income must be verified from pay stubs and/or tax returns 
  • No stated income documentation
  • Credit Scores over 660 

USDA HOME LOAN

USDA loans are available in areas where the population is below 20,000.  Towns close to large metropolitan areas do not qualify.  Maximum income varies by geographic area and is based on 115% of the HUD median income.  Contact us to find out if you qualify! 

  • 100% Financing
  • No cash back 
  • Closing costs can come from any source 

RURAL HOME LOAN

A Rural property is a primary residence which may or may not include acreage and is located in a rural area or in a town having a population of 2,500 or less. Only minimal agricultural activity is permitted. Generally, little or no income is derived from the property and as in value of the farm-type outbuildings must not exceed 20% of the appraised value.  Family farm animals such as horses and 4-H Project animals and barns are allowed to be on the property.

  • Minimum loan amount is $100,000
  • Maximum loan amount is $510,400
  • Must be able to make a minimum down payment of 5% on a purchase
  • Refinance to 95% of appraised value 
  • Cash out to 80% of appraised value
  • Primary residence only 
  • Income must be verified from pay stubs and/or tax returns 
  • No stated income documentation
  • Minimum credit scores of 640 

BARE LAND AND RURAL SITE LOAN

Farm Loan Center does not finance bare land but we can refer you to lenders..  If you intend to build a home on acreage, we can refer you to lenders who provide construction loan financing.  Farm Loan Center can help you consolidate your land loan and construction loan into one final VA or Conventional loan.  Contact us for details.

  • Up to 75% LTV for rural land site acreages, generally 10 to 160 acres
  • Minimum credit score of 620 with no late payments in last 2 years
  • Borrower will state intent to build a single family personal residence on property
  • Full doc-income must be verified from pay stubs and/or tax returns
  • Minimum loan amount is $100,000
  • No cash out
  • 25 year fixed rate and adjustable rate programs
  • No prepayment penalty
  • Property cannot be in city limits unless city population is under 2,500 
  • No commercial or real estate development projects allowed
  • Purchase or refinance allowed

FHA LOAN

FHA Loan for the Purchase of Rural Property

  • Low down payments – up to 97%
  • Low closing costs 
  • Easy credit qualifying 
  • Property cannot exceed 20 acres
  • Value of dwelling must be 50% of appraised value